Reinsurance Grp - RGA STOCK NEWS

Reinsurance Group of America (NYSE: RGA) has announced the pricing of $700 million of 6.650% Fixed-Rate Reset Subordinated Debentures due 2055. The debentures, set to mature on September 15, 2055, will be issued at 100% of principal amount with a fixed-rate coupon of 6.650%, payable semiannually.

The offering is expected to close on March 3, 2025, subject to customary conditions. RGA plans to use the proceeds for general corporate purposes, including funding obligations related to a pending reinsurance agreement with Equitable Holdings for a diversified life insurance products block.

The public offering is being conducted through joint book-running managers BofA Securities, Goldman Sachs, Morgan Stanley, and RBC Capital Markets, with several co-managers supporting the transaction.

Reinsurance Group of America (RGA) has announced a significant reinsurance agreement with Equitable Holdings to reinsure a diversified block of life insurance products. RGA will reinsure 75% of Equitable's in-force life insurance liabilities, comprising $18 billion in general account reserves and $14 billion in separate account reserves, totaling $32 billion.

The transaction requires $1.5 billion of capital deployment at closing and is expected to generate approximately $70 million in adjusted operating income before taxes in 2025, increasing to $160-$170 million in 2026, and reaching approximately $200 million annually over time. RGA plans to finance the transaction using excess capital and potential debt financing.

The deal is anticipated to close in mid-2025, subject to regulatory approvals. Equitable will continue handling policyholder administration and support. The partnership expands across underwriting, product development, distribution, and investment management.

Reinsurance Group of America (RGA) reported Q4 2024 net income of $148 million ($2.22 per diluted share), compared to $158 million ($2.37 per diluted share) in Q4 2023. Q4 adjusted operating income reached $334 million ($4.99 per diluted share), up from $316 million ($4.73 per diluted share) year-over-year.

For the full year 2024, RGA achieved net income of $717 million ($10.73 per diluted share), versus $902 million ($13.44 per diluted share) in 2023. Full-year adjusted operating income was $1,342 million ($20.06 per diluted share), slightly up from $1,334 million ($19.88 per diluted share) in 2023.

The company deployed a record $1,676 million into in-force block transactions during 2024, an 80% increase over the previous record. Q4 net premiums grew 1.2% to $4.2 billion, while full-year premiums increased 18.3% to $17.8 billion. RGA ended Q4 with $1.7 billion in deployable capital and raised its intermediate-term adjusted operating ROE target to 13-15%.

FastTrack and Reinsurance Group of America (RGA) have announced a strategic partnership to provide digital life and life waiver of premium workflow automation and claims system technology to RGA clients. The collaboration combines RGA's expertise in reinsurance and claims management consulting with FastTrack's digital automation technology.

The partnership aims to drive digital transformation initiatives across the life insurance lifecycle, focusing on enhancing customer claim experiences and improving operational processes. Through this collaboration, both companies will work together to identify insurance carriers that could benefit from their joint solutions, helping them execute digital transformation strategies and achieve operational and financial improvements.

Reinsurance Group of America (NYSE: RGA) has announced a strategic investment in PACT Capital , an independent investment firm specializing in middle market alternative asset managers. Through a wholly-owned subsidiary, RGA has made both an investment and an anchor commitment to PACT.

PACT's focus will be on partnering with established and emerging private capital firms to support their strategic growth objectives. Leslie Barbi, RGA's Executive Vice President and Chief Investment Officer, emphasized that this investment aligns with RGA's strategy to enhance investment capabilities through specialized asset class exposure.

Christian von Schimmelmann, PACT's Managing Partner and Co-Founder, stated that RGA's partnership validates their investment approach and positions them as a preferred capital solutions provider. Goodwin Procter LLP served as legal advisor to RGA. The financial terms of the transaction were not disclosed.

PACT Capital Partners has launched as an independent GP stakes investment firm, focusing on providing capital and strategic support to middle-market alternative asset managers. The firm is co-founded by Christian von Schimmelmann, former Global Co-Head of GP Stakes at Goldman Sachs, and Brian Vickery, former McKinsey Partner.

The firm secured significant strategic anchor investments from Reinsurance Group of America (RGA) and Sackville Capital. PACT will utilize its proprietary imPACT platform to assist firms in capital formation, product launches, operations improvement, talent management, and technology implementation.

During his tenure at Goldman Sachs' Petershill, von Schimmelmann helped raise over $10 billion across several GP stakes funds and completed over 30 investments in private market firms. The leadership team also includes Jonathan Snider as CFO and CCO, previously CFO of GTIS Partners.

Reinsurance Group of America (NYSE:RGA) has scheduled its fourth quarter earnings release for Thursday, February 6, at approximately 4:15 p.m. Eastern Time. The company will host a conference call to discuss the results on Friday, February 7, at 10 a.m. Eastern Time.

RGA, founded in 1973, is a global leader in life and health reinsurance and financial solutions, with approximately $4.0 trillion of life reinsurance in force and assets of $120.3 billion as of September 30, 2024. The company focuses on helping clients manage risk and optimize capital, with a mission to make financial protection accessible to all.

Reinsurance Group of America (RGA) has announced a US$4.1 billion coinsurance transaction with John Hancock, a Manulife subsidiary. The deal comprises $1.9 billion in long-term care (LTC) and $2.2 billion in structured settlements. RGA will coinsure a 75% quota share of both blocks, with John Hancock retaining 25%. The LTC policies match RGA's current portfolio characteristics, all issued post-2007. The transaction, funded with internal capital, is expected to close in early 2025 and become earnings accretive by 2025. RGA will continue supporting John Hancock's US permanent life business through yearly renewable term reinsurance at market terms.

Manulife has announced a $5.4 billion reinsurance agreement with RGA, including $2.4 billion of long-term care (LTC) reserves. The transaction will reduce LTC reserves by 6% and morbidity sensitivity by 7%. Combined with a previous transaction, this will result in an 18% cumulative reduction in LTC reserves. The deal, priced at close to 1.0x book value, is expected to release $0.8 billion of capital which will be returned to shareholders through buybacks. The transaction includes a 75% quota share on both ceded blocks and is expected to close in early 2025. It will result in an annual reduction of $70 million in core earnings and $50 million in net income.